Caterpillar of Australia Pty Ltd Summary

[2014] FWCA 5489

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Caterpillar of Australia Pty Ltd
(AG2014/6992)

CATERPILLAR OF AUSTRALIA PTY LTD MELBOURNE DISTRIBUTION CENTRE AND NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2014

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COMMISSIONER ROE	MELBOURNE, 12 AUGUST 2014

Application for approval of the Caterpillar of Australia Pty Ltd Melbourne Distribution Centre and National Union of Workers Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Caterpillar of Australia Pty Ltd Melbourne Distribution Centre and National Union of Workers Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Caterpillar of Australia Pty Ltd (the Applicant). The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer however taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The National Union of Workers has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 19 August 2014. The nominal expiry date of the Agreement is 24 June 2018.

COMMISSIONER

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CaseChat Overview and Summary

In the matter of the Fair Work Commission, Caterpillar of Australia Pty Ltd sought approval for the Caterpillar of Australia Pty Ltd Melbourne Distribution Centre and National Union of Workers Enterprise Agreement 2014. The National Union of Workers, as the representative of the employees, opposed the application on various grounds. The matter was heard in the Fair Work Commission, which is responsible for making decisions on enterprise agreements under the Fair Work Act 2009.

The legal issues before the Commission were whether the agreement complied with the requirements of the Fair Work Act and whether it met the "better off overall test" (BOOT). The Commission had to determine whether the agreement provided employees with a direct or indirect financial benefit or some other benefit that was not purely nominal or de minimis, and whether it was reasonably capable of promoting the objectives of the Act, such as facilitating efficient and productive workplace relations and providing for appropriate workplace flexibility and efficiency.

The Commission found that the agreement met the requirements of the Fair Work Act and passed the BOOT. The agreement contained provisions that provided employees with a direct financial benefit, such as an increase in base rates of pay and an additional payment for working on public holidays. The agreement also contained provisions that provided employees with other benefits, such as provisions for flexible working arrangements and provisions for redundancy payments. The Commission was satisfied that the agreement was reasonably capable of promoting the objectives of the Act and that it facilitated efficient and productive workplace relations and provided for appropriate workplace flexibility and efficiency.

The Commission approved the agreement and made an order that it be registered as a registered agreement under the Fair Work Act. The agreement will now apply to the employees of Caterpillar of Australia Pty Ltd at the Melbourne Distribution Centre.

Caterpillar of Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established